Applus Services, S.A. Investor Presentation

Transcription

1 Applus Services, S.A. Investor Presentation April 2015 Aston Swift, Investor Relations

2 A LEADING GLOBAL PROVIDER OF TESTING, INSPECTION AND CERTIFICATION (TIC) SERVICES Revenue 1.62bn, Adj Op Profit 159m, Margin 9.8% Leadership in chosen markets and technology Strategic focus No. 1 in Oil & Gas asset inspection and Non Destructive Testing (NDT) (RTD, Velosi) No. 2 Operator of Statutory Vehicle Inspections (Auto) Leading independent Proving Ground (IDIADA) Power transmission grids leadership (Norcontrol) Leading payment system technology (Labs) Global platform with local presence Power (Norcontrol) 8% Auto OEM (IDIADA) 9% Other 15% Statutory Vehicle Inspection (Auto) 17% Oil & Gas (RTD/Velosi/ Norcontrol) 51% 20,000 employees 70 countries Over 48,000 customers Growth in 2014 Organic revenue growth 1 of 4.4% Organic Adj. Op. profit growth 1 of 8.0% Adj. Operating cash flow up 29% Diversified geographic footprint Asia Pacific 14% Latin America 8% Middle East, Africa 11% North America 23% Spain 16% Rest of Europe 28% 1. At constant exchange rates 2

3 Shareholding Milestones DEVELOPMENT OF THE GROUP Establishment of Agbar Automotive, Statutory Vehicle Inspection Company IDIADA contract awarded Launch of Applus+ brand worldwide Applus+ Laboratories contract awarded Acquisition of NORCONTROL (2004) Acquisition of Bilsyn in Denmark (2005) Acquisition of RTD Acquisition of K1 in Finland (2006) Acquisition of VELOSI Applus+ IPO May 2014 Revenue - 138m 227m 546m 669m 815m 1,180m 1,581m 1,619m Countries (100%) (53%) (25%) (70%) Financial institutions and other (30%) And other pre-ipo shareholders (36%) Free Float (64%) (22%) 3

4 ATTRACTIVE PORTFOLIO OF ACTIVITIES Divisions 2014 Revenue (% Group Revenue) 548m (34%) 393m (24%) 206m (13%) 47m (3%) 280m (17%) 145m (9%) 2014 Adj Operating Profit 1 (% Group) 48 (27%) 34m (19%) 18m (10%) 2m (1%) 60m (33%) 19m (10%) 2014 Adj. Operating Profit Margin 1 8.8% 8.7% 8.7% 4.2% 21.5% 13.1% Main Activities Non-destructive testing and inspection services Advanced technologies in NDT and corrosion analysis Oil & Gas, Power, Aerospace, Civil Vendor surveillance, third party inspection, certification and technical recruitment services Oil & Gas, Power, Mining Industrial and environmental inspection and technical assistance services Utilities, Telecoms, Oil & Gas, Civil Product testing and system certification services IT, Mechanical, EMC 2,Electricity, Fire & Building Materials, Metrology labs Statutory vehicle inspection services Safety emission and gas testing solutions Design, engineering, testing and homologation services for the automotive industry Proving ground and testing facilities 1. Divisional financials before Group level overhead costs of 22.4 million 2. Electro Magnetic Compatibility 4

5 STRUCTURAL GROWTH DRIVERS RTD, Velosi, Norcontrol, Labs (Energy & Industry) (74% of Revenue) Automotive (Statutory Vehicle Inspections) (17% of Revenue) IDIADA (Automotive Engineering & Testing) (9% of Revenue) Energy and other infrastructure investments Maintenance of ageing Oil & Gas assets in US, Europe and Middle East Resilience to economic downturn Developing countries adopting statutory inspection programmes Increased number of vehicle models / shorter product life cycle Increased outsourcing in developed markets Growth Drivers and Key Risks Growth in Latin America infrastructure Increase in regulations Economic recovery in Spain Key risks: decline in capex and opex spend in Oil & Gas Potential increase in the number of states adopting inspections in the US Increase in scope and frequency of inspections and vehicle types in the EU Key risks: changes in regulation and contract renewals OEMs in Emerging Markets need to import technical know-how Key risks: reduced R&D spend and model variants in Auto OEM See Annual Financial Statements for all risks and further detail 5

6 FIVE YEAR TRACK RECORD OF GROWTH 1,460 1,584 1,619 1,180 Revenue ( bn) 1 0, Spain Rest of Europe US and Canada Latin America Asia Pacific Middle East and Africa 1. Revenues based on actual rates and proforma for acquisitions within the relevant acquisition year 6

7 MANAGEMENT TEAM Fernando Basabe CEO 2011 / 18 LEGEND Name Position Joined Applus+ / Years of industry experience Joan Amigó CFO 2007 / 8 José Delfin SENIOR VP HUMAN RESOURCES 2006 / 9 Jorge Lluch SENIOR VP CORPORATE DEVELOPMENT 2007 / 8 Eva Argiles LEGAL 2013 / 2 Iain Light EXECUTIVE VP 2011 / 22 Ramón F. Armas EXECUTIVE VP 1998 / 16 Pablo San Juan EXECUTIVE VP LATAM 1988 / 26 Jordi Brufau EXECUTIVE VP 2007 / 8 Aitor Retes EXECUTIVE VP 2009 / 6 Dr.-Ing. Carles Grasas EXECUTIVE VP 1987 / 28 7

8 KEY INVESTMENT HIGHLIGHTS 1 Global platform with market leadership and scale 2 Focus on market segments with long term structural growth 3 High barriers to entry strengthening blue-chip client relationships 4 Value creation through inorganic strategy 5 Experienced international management team 6 Resilient financial profile 8

9 DIVISIONS DESCRIPTION

10 APPLUS+ RTD REVENUE ADJ. OPERATING PROFIT 34% 27% Overview Geographic Revenue Breakdown Founded in 1937, headquartered in Rotterdam and joined Applus+ in 2006 Leading global provider of non-destructive testing and inspection services for high-risk capital intensive assets Focused on Oil & Gas, Power, Utilities, Aerospace and Civil Infrastructure sectors Strong reputation built upon track record of innovation, technology and highly qualified employees Active in 18 countries with 4,000 employees Asia Pacific 11% Europe 33% Rest of world 1 5% North America 51% Pipelines 37% 1. Rest of world comprises Latin America, Middle East and Africa 10

11 APPLUS+ VELOSI REVENUE ADJ. OPERATING PROFIT 24% 19% Overview Geographic Revenue Breakdown Founded in 1982 in Kuala Lumpur and joined Applus+ in 2011 A leading global provider of vendor surveillance, site inspection and technical staffing services for the Oil & Gas industry LatAm 1% Europe 13% o o Leading position in Middle East, Africa and Asia Pacific Growing presence in North America Middle East & Africa 40% North America 14% Revenue mostly generated by Oil Majors Active in 47 countries with 5,500 employees Asia Pacific 32% 11

12 APPLUS+ NORCONTROL REVENUE ADJ. OPERATING PROFIT 13% 10% Overview Geographic Revenue Breakdown Founded in 1981, headquartered in Madrid Operates under two segments: Norcontrol Spain and Norcontrol LatAm Assesses the quality, safety and efficiency of the design, construction and operation of industrial facilities Rest of World 4% Leading position in Spain with strong presence in Latin America Clients include Utilities, Oil & Gas companies and Infrastructure developers Active in 20 countries with 4,800 employees Latin America 40% Spain 56% 12

13 APPLUS+ LABORATORIES REVENUE ADJ. OPERATING PROFIT 3% 1% Overview Geographic Revenue Breakdown Product testing and certification services Multi-technology state-of-the-art laboratories for electrical safety, building fire safety, EMC 2 A global leader in electronic and mobile payment systems (software and hardware testing) European reference in Aerospace testing Wide range of accreditations, customer & sector qualifications (Aerospace, IT etc.) Presence in Europe, Latin America, China and Saudi Arabia with 600 employees Rest of Europe 1 29% Rest of World 6% LatAm 9% Spain 56% 1. Rest of Europe is Germany and Norway 2. Electro Magnetic Compatibility 13

14 APPLUS+ AUTOMOTIVE REVENUE ADJ. OPERATING PROFIT 17% 33% Overview Geographic Revenue Breakdown Established in Spain in 1996 Second largest statutory vehicle inspection operator globally 1 with leading market positions in Europe and Americas: 11 million inspections pa Focused on the assessment of vehicle safety and pollution Active in both regulated and deregulated markets North America 12% Rest of Europe 46% Latin America 10% Spain 32% Presence in Europe and Americas with 3,300 employees Revenue Breakdown by Regulatory Regime Liberalised 25% 1. Based on number of inspections carried out Concession/ authorisation based (Regulated) 75% 14

15 APPLUS+ IDIADA REVENUE ADJ. OPERATING PROFIT 9% 10% Overview Geographic Revenue Breakdown Founded in 1971, HQ in Tarragona, Spain Engineering, testing and homologation services provider to the leading vehicle manufacturers (OEMs) World leading independent proving ground leased from local Government since Specialised testing facilities with deep knowledge in technical requirements to fulfil vehicle standards and regulations worldwide Advanced R&D capabilities in body passive & active safety, chassis & powertrain and electronics & reliability Global network in 23 countries in Europe, China, India, Brazil and 1,800 employees Asia Pacific 23% LatAm 3% Rest of world 1 1% Spain 19% Rest of Europe 54% 1. Rest of world is North America and Middle East 2. Contract runs until 2019 and can be extended for incremental periods of 5 years until The Catalan Government has committed to extend to

16 Disclaimer This document may contain statements that constitute forward looking statements about Applus Services, SA ( Applus+ or the Company ). These statements are based on financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations, which refer to estimates regarding, among others, future growth in the different business lines and the global business, market share, financial results and other aspects of the activity and situation relating to the Company. Such forward looking statements, by its nature, are not guarantees of future performance and involve risks and uncertainties, and other important factors that could cause actual developments or results to differ from those expressed in these forward looking statements. These risks and uncertainties include those discussed or identified in fuller disclosure documents filed by Applus+ with the relevant Securities Markets Regulators, and in particular, with the Spanish Market Regulator. Applus+ does not undertake to publicly update or revise these forward-looking statements even if experience or future changes make it clear that the projected performance, conditions or events expressed or implied therein will not be realized. This document may contain summarized information or information that has not been audited. In this sense, this information is subject to, and must be read in conjunction with, all other publicly available information, including if it is necessary, any fuller disclosure document published by Applus+. Nothing in this presentation should be construed as a profit forecast. 16

17 FOR FURTHER INFORMATION Ticker: APPS-MC Aston Swift, Vice President Investor Relations T: E: 17